Crowdfunding: Striking a Balance between Investor Protection and Investor Freedom

CPA and auditor makes commentary on coming equity crowdfunding.

The Internet and the advent of social media did not exist in 1933 and 1934 when the initial SEC regulations were written. Furthermore, in today’s market, an entrepreneur could spend hundreds of thousands of dollars on legal and accounting fees in order to raise $1 million in capital. Hence, early stage entrepreneurs find it nearly impossible to identify cost-efficient sources of funding for their emerging growth companies.

 

For the full article, visit triplepundit.com

Addressing Intellectual Property Protection Issues Around Crowdfunding

Many entrepreneurs concerned about the lack of intellectual property (IP) protections, however, are still wary of crowdfunding their ideas.

Their apprehension is understandable. Crowdfunding is typically a way to finance early-stage projects and products that may not yet have the appropriate IP safeguards in place. Many innovative and interesting projects are left off crowdfunding sites, which hurts entrepreneurs and platforms alike.

Creative barcodes were created to address some of these concerns on sharing content and ideas.

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For the full article, checkout crowdsourcing.org

Investors warned about Dragon’s Den-style ‘crowdfunding’ ventures

Crowdfunding appeals to amateur investors because it gives them the chance to own a stake in a new business without a significant outlay.

Investment opportunities are usually marketed over the internet by companies unable to secure funding through traditional lending channels.

 

For the full article, visit swns.com

What Entrepreneurs Need To Know About Equity Crowdfunding

Chance Barnett, CEO of CrowdFunder answers questions about equity crowdfunding.

What could you ask readers to do to accelerate implementation of the rules?

Reach out to your congressmen and ask how they care for job creation, capital access for small business owners by writing the SEC.

 

For the full article, checkout the Forbes.com article.

Beyond Kickstarter: Why One Site Shouldn’t Dominate Crowdfunding

Kickstarter’s one-size-fits-all approach doesn’t fit every dream, or every group of dreamers. For starters, the site requires every project to create some sort of final product, whether it be a physical object or a piece of media or a performance. This leaves many types of undertakings out in the cold.

One site to rule them all won’t apply with all the different niches and needs of people raising funds.
For the full article, visit Wired.

Crowdfunding moves to concerts bringing big acts to small towns

New online methods are putting the fans – rather than corporate promoters and ticket sellers – back in charge.

“The potential of this new model is to reverse the touring status quo – to bring the band to the town where the fan is”

For the full article on music act crowdfunding, visit the independent.

While waiting for SEC regulations, crowdfunding leaders focus on investor education

With all of these investors that are new to investing in non-public companies, education will play a key role.

Some crowdfunding industry leaders are using the lull before the fundraising practice is publicly viable to develop educational material for people who may soon be making their first investments.

For full article, visit the Washington Post site.

Crowdsourcing using by large and small companies alike

Crowdsourcing using by large and small companies alike

Crowdopolis conference will feature crowdfunding best practices from large Fortune 500 companies to small companies.

Crowdfunding Portals Let you Sell Stock in Yourself

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Human capital contracts have been proposed by esteemed economists including Milton Friedman, who advocated them as an alternative to taking on student loans.

“People find it creepy because people in general don’t want to believe that there is a market value associated with them”

New crowdfunding portals let people with potential sell “stock” in their future. For more details, checkout the full article at The Verge.